Paramount Skydance has completed its takeover of Warner Bros Discovery, bringing CNN and CBS News under the same corporate ownership, in a deal that has raised concerns about editorial independence and freedom of speech. The acquisition, worth about $110bn including debt, combines two of Hollywood’s biggest studios after months of legal challenges lodged by state attorneys general and unions. The new company, Skydance Corporation, brings together HBO, CBS, Nickelodeon, Showtime, Comedy Central, DC Studios and Food Network, alongside streaming services Paramount plus and HBO Max.
But its control of two major US news organisations has drawn particular scrutiny. David Ellison, Skydance’s chairman and chief executive, has promised to preserve their editorial independence, but his father, Oracle cofounder Larry Ellison is a major financial backer of the deal, and has previously donated funds to US President Donald Trump and Israel. Asked about the takeover on Tuesday, Trump welcomed it.
The takeover faced initial opposition from Hollywood workers, politicians and state prosecutors concerned about the mounting concentration of power in an industry already dominated by a handful of companies. Netflix initially reached an agreement to buy part of Warner Bros Discovery. Paramount then launched a competing bid, prompting a bidding war before Netflix walked away.
A California-led coalition of 12 state attorneys general sued to block the deal, saying that it would reduce competition and raise prices. The Writers Guild of America brought a separate challenge. Both cases were settled in September when Paramount agreed to commitments relating to film production, support for displaced workers and protections for the news networks, including the creation of a new editorial independence board.
But the settlement did not end opposition to the deal. Democratic Senator Elizabeth Warren linked the takeover to Trump’s efforts to restrict media access. One condition of the settlement requires Skydance to establish a “News Editorial Independence Board” within 180 days of completing the takeover.
The five-member body is to include active or retired journalists with at least 10 years of experience. It is intended to establish editorial principles and address disputes involving the news networks and corporate management. However, its members will be appointed by, and will report to, Skydance’s board of directors, which Ellison chairs.
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